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Deep Cuts Inflict Ford Motors

Ford Motor Company is facing the most knotty stage of its existence. Last Friday, Ford Motor Company announced two additional factory closures and the laying off of 10,000 workers.

There has been efforts exerted to save the automaker but they proved to be futile. Unfortunately, Ford has marked the end of the line for its thousands of workers to slash the expenses for its salaried jobs. Moreover, the automaker is also offering buyouts to its 75,000 hourly workers.

“The simple fact is that the business model that served us in North America for decades now longer works. We must change to a new business model that delivers greater bottom-line contributions from cars and crossovers, continued leadership in pickups, new products that drive revenue and actions that move rapidly to reduce our costs to achieve profitability,” says Mark Fields, executive vice president of Ford Motor Company.

Fields also confirmed the fact that it will be idle 2 more plants - one in Canada and another in Ohio. By 2008, Ford has already accumulated 16 plant closures. The cuts made by Ford will reduce its working force by 29 percent. Further, from its recent 130,000 workers, said figure will drop to approximately 92,000. As a result, employees were shaken and rattled.

An employee of the Dearborn, Michigan, Ford plant which is famous for manufacturing Ford Mustang parts as well as Ford F150 pickup parts has expressed his sentiments. Brent Orr says, “I’m probably going to take a buyout, one of the buyouts that they’re offering, just because they’ve redlined our trade. No more carpenters will ever be hired at Ford Motor Company ever again.”

Ron Lare, also an employee of an affected plant noted, “Well, I’m in a much better situation than the young workers. They’re the ones who are really going to bear the brunt of this. I may get an early retirement package, but I’d like to respond to something another speaker said, which is talking about jobs going away. And we need solidarity with Ford workers around the world. We do have some leverage. Ford is profitable worldwide. I think we need to get together with autoworkers in other countries with joint contract expiration dates and joint strike deadlines.”

About the Author: Jay Stevens works as a consultant for an established auto parts store in the country. He has expertise in automotive technology and has extensive knowledge on the auto parts industry.

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